Upon the termination of a marriage, the separate property owned by spouses is
________.
A) equally divided between the spouses
B) retained by the respective spouses who owned it
C) shared using a fair distribution method for marital assets
D) converted into a marital asset
A duty that a principal owes to pay an agreed-upon amount to the agent either upon the
completion of the agency or at some other mutually agreeable time is known as a
principal’s ________.
A) duty to reimburse
B) duty to cooperate
C) duty to indemnify
D) duty to compensate
A ________ has an ownership or other interest in the collateral and owes payment of a
secured obligation.
A) creditor
B) debtor
C) seller
D) lender
A legal right that arises out of a breach of contract is ________.
A) assignable
B) not assignable
C) subject to approval clause
D) considered a future right
Which of the following is true of the payment of distributional interest to a
disassociating member?
A) An at-will LLC must purchase a disassociated member’s distributional interest only
if there is a wrongful disassociation.
B) The price and terms of the distributional interest are fixed by the member-managers
of the LLC.
C) A term LLC must purchase a disassociating member’s distributional interest within a
month of the member’s notification of the disassociation.
D) Any damages caused to an LLC by wrongful withdrawal must be offset against the
purchase price of the disassociating member’s distributional interest.
A short-form merger between a parent corporation and its subsidiary only requires the
approval of ________.
A) shareholders of the parent corporation
B) shareholders of the subsidiary corporation
C) the board of directors of the parent corporation
D) the board of directors of the subsidiary corporation
Clive buys a rifle from Greenwood Defense and goes hunting. During the hunting
expedition, he accidentally shoots himself in the foot. Given that Greenwood Defense
supplies to private individuals only, which of the following defenses can Greenwood
Defense use against a strict liability lawsuit that Clive files against it?
A) supervening event
B) generally known dangers
C) abnormal misuse
D) government contract defense
The goal of ________ is to provide humanitarian aid and assistance to children and
mothers of children, primarily in developing countries.
A) IFAD
B) IMF
C) UNESCO
D) UNICEF
Which Fifth Amendment provision in the U.S. Constitution do the Miranda Rights refer
to?
A) double jeopardy
B) unreasonable searches and seizures
C) privilege against self-incrimination
D) parole eligibility
In which of the following cases is a buyer in breach of a sales contract?
A) if the buyer fails to provide a document of title to a bailee
B) if the buyer accepts nonconforming goods
C) if the buyer refuses to accept conforming goods
D) if the buyer asks for replacements for defective goods
The signature requirement indicates that a negotiable instrument must be signed by
________.
A) a witness
B) the maker
C) a drawee
D) the payee
A surviving corporation is one that ________.
A) continues to exist after a merger
B) is absorbed by the merged corporation in a merger
C) orchestrates the merger of two separate companies
D) is bought by a merged corporation in a merger
Who among the following is a good faith purchaser for value?
A) a person who pays sufficient consideration for the goods
B) a person who obtains the goods by fraud or impersonation of another person
C) a merchant who sells the goods entrusted to him by others
D) a seller who has a voidable title to goods
A(n) ________ is a comprehensive insurance policy that includes coverage for the risks
covered by a fire insurance policy as well as personal liability insurance.
A) homeowners’ policy
B) life insurance policy
C) umbrella insurance
D) omnibus policy
Which of the following is a similarity of a flip-over rights plan and a flip-in rights plans
with respect to a target company?
A) Both help an acquiring firm in a smooth, cost-efficient takeover of the target firm.
B) Both allow the target company’s shareholders to convert their shares for a greater
number of debt securities of the target company.
C) Both make it expensive for an acquiring firm to take over the target corporation.
D) Both allow the target company’s shareholders to convert their shares for a greater
number of shares of the acquiring company.
A special form of note created when a person deposits money at a financial institution
in exchange for the institution’s promise to pay back the amount of the deposit plus an
agreed-upon rate of interest upon the expiration of a set time period agreed upon by the
parties is known as a ________.
A) collateral note
B) check
C) certificate of deposit
D) bill of exchange
The 10 non-permanent members of the UN Security Council are selected by ________.
A) members of the General Assembly to serve two-year terms
B) members of the General Assembly to serve five-year terms
C) the secretary-general of the Secretariat to serve two-year terms
D) the secretary-general of the Secretariat to serve five-year terms
Which of the following statements is true of mitigation of damages?
A) The breaching party must make efforts to mitigate damages resulting from the
breach of contract.
B) If an employer breaches an employment contract, he or she owes a duty to mitigate
damages by trying to find substitute employment for the employee.
C) The extent of mitigation of damages required is common to all kinds of contracts.
D) If an employer breaches a contract, the employee is only required to accept
comparable employment.
Which of the following is true of lost property?
A) The finder obtains title to the property against the owner.
B) The finder has no legal obligation to return the property to its rightful owner.
C) The property should be equally shared between the finder and the true owner.
D) The finder obtains title to the property over everyone except the true owner.
Which of the following statements is true of the liability of an incoming partner?
A) An incoming partner is liable for the previous debts of the partnership.
B) An incoming partner is equally liable for all existing debts of the partnership.
C) An incoming partner is liable for the debts of the partnership only to the extent of his
or her capital contribution.
D) An incoming partner is not liable for the future debts of the partnership.
A ________ defense is a type of defense that can be raised against both holders and
HDCs.
A) universal
B) personal
C) fraud in the inducement
D) breach of contract
A computer program or an electronic or other automated means used independently to
initiate an action or respond to electronic records or performances in whole or in part,
without review or action by an individual, is known as ________.
A) electronic agent
B) electronic record
C) digital mapper
D) automation
________ is an interest a creditor automatically obtains when he or she extends credit
to a consumer to purchase consumer goods.
A) Purchase money security interest
B) Cumulative security interest
C) Future advance monetary interest
D) Default interest
The ________ requires that government statutes, ordinances, regulations, and other
laws be clear on their face and not overly broad in scope.
A) procedural due process
B) substantive due process
C) intermediate scrutiny test
D) rational scrutiny test
Which of the following is true of the Federal Trade Commission (FTC)?
A) The FTC’s decisions can be appealed in a state court.
B) The FTC can sue to obtain compensation on behalf of the consumer.
C) The FTC can only sue in state courts.
D) The FTC is not allowed to directly disclose its findings to the public.
Lanuxa is a restaurant that is on the verge of bankruptcy. Gourmet World, a restaurant
chain, acquires all the stocks of Lanuxa in an attempt to expand its business. To avoid
legal paperwork, Gourmet World decides to retain its separate legal existence from that
of Lanuxa’s. This is an example of a ________.
A) proxy
B) merger
C) share exchange
D) supramajority
Section 2 of the Sherman Act ________.
A) upholds predatory pricing
B) outlaws monopolies
C) requires identification of the relevant market
D) does not require that the defendant possess monopoly power
Which of the following is true of discharge of debt?
A) A debtor is legally liable to pay a partial amount of the discharged debts.
B) All kinds of debts are dischargeable in a bankruptcy procedure.
C) A creditor cannot pursue nondischarged debts after the debtor’s bankruptcy.
D) A debtor is not legally liable to pay the discharged debts.
________ is a form of bankruptcy in which the debtor’s nonexempt property is sold for
cash, the cash is distributed to the creditors, and any unpaid debts are discharged.
A) Abusive filing
B) Dissolution of debt
C) Liquidation
D) Reorganization
Which of the following statements is true of the United States’ Foreign Commerce
Clause?
A) Regulation of foreign commerce by state governments is unconstitutional.
B) A state can enact a law that forbids a foreign country from doing business in that
state, if that country engages in activities that are not condoned by that state.
C) Direct regulation of foreign commerce by the federal government violates the
Commerce Clause.
D) A state government is only permitted to regulate foreign trade indirectly.
Monopoly power is characterized by a(n) ________.
A) market share of below 20 percent
B) inability to control prices in the market
C) ability to exclude competition from other sellers
D) presence of multiple substitute goods at competing prices